Southern Co. Chief Executive Sells $47 Million in Stock

By

Grace L. Williams

September 12, 2014

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Southern Co.'s top executive was the source of large selling of the utility's shares on Sept. 5.

Chief Executive, President and Chairman Thomas A. Fanning exercised options and sold 1,049,185 Southern (ticker:
SO
) shares for $46,688,732, an average of $44.50 each. Regulatory filings show that Fanning exercised options at a price range of $31.17-$37.97 and they weren't set to expire until Feb. 18, 2018, at the earliest.

The CEO's most recent previous transaction was on Jan. 27, 2012, when he exercised options and sold 275,600 shares of the utility for $12.4 million, an average of $45.07 each. Fanning now directly holds 35,082 shares, a stake of less than 1% in Southern. He holds an additional 3,977 shares through a 401(k).

Fanning was named president in August 2010 and assumed the additional responsibilities of CEO and chairman in December 2010.

A spokesman for Southern responded to a request for comment in an email: "Fanning's recent stock sale is a routine part of his long-term financial planning."

Jonathan Moreland, director of research for InsiderInsights.com, rates the transaction as Leaning Bearish.

"We're not going to short this boring utility stock," Moreland says in an interview with Barrons.com. "We're not going to use the sale as an excuse to short Southern." Yet he regards Southern's stock as something to "avoid" and suggests that utilities investors consider Calpine (
CPN
), which has seen three insiders buying stock.

Southern reported a strong second quarter on July 30, but the shares haven't challenged a 52-week intraday high of $46.81, unadjusted for dividends, set on April 29. The stock closed at $43.36 on Friday.

Dr. Ian Dogan, director of research for InsiderMonkey.com, doesn't see the stock setting a new record any time soon.

"Southern's revenue growth since 2010 is around zero," Dogan writes in an email. "We'd rather buy solar energy stocks like SunEdison (
SUNE
) than traditional electric utilities like Southern."

Recent Insider Activity

Buyers

Company Name

Insiders Name

Title

$ Value

No. of Shares in Trans.

Ranges of Values

Transaction Dates

Southern Copper

G. Larrea Mota Velasco

CB

$3,188,870

100,000

31.89

Sept 9 2014

Southern Copper

G. Larrea Mota Velasco

CB

1,576,365

50,000

31.53

Sept 10 2014

Transdigm Group

J. Skulina

O

1,234,770

6,578

187.71

Sept 10 2014

Titan Machinery

D. Meyer

CEO

1,174,098

90,250

13.01

Sept 10 2014

Intevac

M. Drapkin

D

827,136

124,153

6.65-6.68

Aug 14-15 2014

Intevac

M. Drapkin

D

649,206

94,409

6.85-7

Aug 20-22 2014

Iron Mountain

P. Deninger

D

502,880

14,000

35.92

Sept 5 2014

Brixmor Property Group

A. Deering

D

493,373

20,950

23.55

Sept 10 2014

Terraform Power

C. Domenech

CEO

323,774

10,000

31.7-32.8

Sept 8-9 2014

Vicor

P. Vinciarelli

CEO

220,436

26,000

8.46-8.50

Sept 9-10 2014

Source: Thomson Reuters

Recent Insider Activity

Sellers

Company Name

Insiders Name

Title

$ Value

No. of Shares in Trans.

Ranges of Values

Transaction Dates

Michael Kors Holdings

L. Stroll

D

$892,571,800

11,629,600

76.75

Sept 10 2014

Michael Kors Holdings

S. Chou

D

892,571,800

11,629,600

76.75

Sept 10 2014

Lululemon Athletica

D. Wilson

DO

771,552,600

18,370,300

42.00

Sept 9 2014

Sensata Technologies Holding

P. Edgerley

D

664,475,130

14,048,100

47.30

Sept 10 2014

Sensata Technologies Holding

S. Zide

D

664,475,130

14,048,100

47.30

Sept 10 2014

CDW

P. Finnegan

DO

248,791,775

7,786,910

31.95

Sept 8 2014

CDW

G. Creamer

DO

219,969,360

6,884,800

31.95

Sept 8 2014

Chimerix

J. Niedel

D

32,331,540

1,099,949

28.54-30.03

Sept 9-11 2014

Fidelity National Info Services

G. Norcross

P

22,289,939

385,502

57.74-57.94

Sept 9-10 2014

CBS

L. Moonves

CEO

16,606,828

281,250

59.05

Sept 8 2014

Source: Thomson Reuters

Here's a rundown of insider trading activity reported onSeptember 12, 2014. An insider is any officer, director or owner of 10% or more of a class of the company's securities. The table shows purchases and sales which must be reported to the SEC and other regulators by the 10th of the month following the month of the trade, includes both open-market and private transactions involving direct and indirect holdings. Excludes stock valued at less that $2 per share, acquisitions through options and companies being acquired. Included are purchases, sales and stock registered for sale for individual officers, companies, and sectors.

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